The average refund in 2016 was €1,100 *Source: Midas PAYE customer statistics, 2016. Midas is a tax based service and not a regulated financial product. Cornmarket Retail Trading Ltd. is a wholly-owned subsidiary of Cornmarket Group Financial Services Ltd. Telephone calls may be recorded for quality control and training purposes.

What should I pay?

The aim of today To cover the basics - how to check what you should be paying, if you are tax compliant and find out if you are due a refund.

Agenda How tax is collected and when it has to be paid How to check if you are paying the right amount 3. Why it’s important to be tax compliant

Irish Average Historic Income Tax Rates Current rates are 40% + 20% depending on income. Source: Revenue

Who Pays Tax in Ireland? Gross Income No. of Tax payers Gross Income Tax/USC collected €30 - €35k 184,329 €5,933m €527m €35 - €40k 151,485 €5,653m €621m €40 - €50k 251,631 €11,236 €1,587m €50 - €60k 180,317 €9,859 €1,717m €60 - €70k 112,431 €7,266 €1,405m Over a quarter of all tax income (€5,857m) is collected from people earning €30k - €70k Source: Revenue, 2015.

The PAYE System

Your Tax Credit Certificate It instructs your employer on what Tax to deduct. If it’s wrong…… YOU PAY too much or too little! Text “CERT” and your PPSN to 51829 to get a copy.

Your Payslip 5. Check your deductions 1.Check your Point on the Salary Scale 6. Not taxable 3. Standard Rate Cut-Off Point should be at least €1,300 4. PAYE should be at least 128 2. Check your PRSI class (A1 / D)

Check your Tax Credits & Rate Bands

Standard Rate Bands 2017 Personal Circumstances Single €33,800 @ 20% Balance @ 40% Lone Parent €37,800 @ 20% Married with one income €42,800 @ 20% Married/Civil Partnership with two incomes* €67,600 @ 20% *transferrable between spouses, maximum of €42,800 with one spouse.

Methods of Assessment Single Assessment – taxed as a single person throughout the year and at end of year review. Separate Assessment – taxed as a single person throughout the year. Unused credits and rate bands may be transferred between spouses after year end. Joint Assessment – taxed jointly throughout the year. Allows flexibility in allocating tax credits and rate bands. 3 methods

The average Tax Refund was €1,100 last year! How many people here do a Tax return? The average Tax Refund was €1,100 last year! To date we have claimed back over €40 million in overpaid tax on behalf of Public Sector employees like you. Source: Midas PAYE customer statistics 2016.

Why PAYE/Public Sector Employees Overpay Tax Factors Repercussions Not sharing credits and cut-off points in a tax efficient manner Not claiming the appropriate tax credits, reliefs, rate bands, etc Not availing of all allowances & entitlements Tax Credit Certificate details incorrect Incorrect allocations accumulate year on year. Married Change Job Agency Work Income changes Birth of child Human error when calculating and deducting tax.

You can claim back tax for a period of up to 4 years! Tax reliefs/allowances available Are you availing of all the reliefs available to you? Employment expenses €€ Medical Expenses €€ Tuition Fees €€ Salary Protection €€ Pension €€ Tax Bands incorrect €€ Mortgage Interest Relief €€ Rent Credit €€ You can claim back tax for a period of up to 4 years!

Tax credits The more credits you accumulate, the less tax you pay. ….they are worth money and shouldn’t be ignored!

Personal Tax Credits 2017 Personal Circumstances Single Person Credit €1,650 Married Person Credit €3,300 PAYE Credit Single Parent

Other Tax Credits Home Carer - €1,100* Incapacitated Child - €3,300 Dependant Relative - €70** Age Credit - Single €245 / Married €490 *Cannot have an annual income in excess of €7,200. **Cannot be claimed in conjunction with Home Carer’s Credit.

Maximise your Allowances & Reliefs

Claim relief on your Medical Expenses Make your medical insurance claim (www.hia.ie) Tax relief at source, unless paid by employer. 2. Avail of the Drug Payments Scheme - max €144 pm (www.hse.ie) 3. Apply for your tax relief through Form Med 1.

Flat Rate Expenses Teachers/Lecturers Agreed between Revenue and your Union for expenses incurred directly related to the nature of your employment. Teachers/Lecturers on full hours: €518 Principals, Professors, Heads of Schools/Departments: €608 Teaching Council: €90 Relief at your marginal tax rate (20% or 40%)

Qualifying Health Expenses Doctor, GP, consultant or hospital fees Items or treatments prescribed by a Doctor Approved nursing home fees (40%) Non-routine Dental Treatments Prescribed medicines Certain dietary products, e.g. Coeliac/Diabetic. ***keep the receipts for 6 years***

Tuition Fees Relief for Fees for approved 3rd Level Colleges Primary 2 year+ / Masters 1 Year + Ireland and EU based courses Limits: €7,000 total fees per person p.a. Exemption (per household): First €3,000 for full time course not claimable First €1,500 for part time course not claimable.

Other Income

Other Income Landlord Self Employment Deposit Interest where DIRT paid Foreign Income Irish Dividends where 20% tax deducted.

Earning more than €5,000 outside of PAYE Income If you earn more than €5,000 of income from any source outside the PAYE system you are obligated to file a return annually. If you don’t file a return, penalties and late fees apply.

Rental Income Income - Expenses = Taxable Profits Example of allowable expenses Mortgage interest (75%, 80% 1/1/17) Insurance Mortgage protection Management Fees Letting Fees Repairs & Maintenance Advertising Accountancy fees Painting & Decorating PRTB Utility bills Wear & Tear on Fixtures & Fittings.

Mortgage repayment / interest Rental Income 2016 Taxpayer’s View Revenue’s View Monthly Rental Income €1,000 Mortgage repayment / interest (€1,200) (€720)* Profit / (Loss) (€200) €280 * Assuming 80% of repayment is interest, restricted to 75% allowable.

Remind me why we should file regular tax returns?

Pension Contributions Age Considerations 20 Multiple Jobs, e.g. Subbing Medical expenses Rent Relief 30 Mortgage Relief Medical expenses Pension Contributions 40 AVC’s Medical expenses Sharing Credits Tuition Fees 50 Parent Nursing Home Fees Last Minute AVC’s CAT/CGT

70 66 65 60 55 50 2nd Spouse Retirement State Pension Cap on USC Medical expenses 66 Cap on USC DIRT Refund Medical expenses 65 Inheritance Planning ARF Distributions PRSI Exemption Medical expenses Last Minute AVC’s 60 Age Credit Medical expenses 55 Tuition Fees 1st Spouse Retirement Medical expenses 50 CAT/CGT Parent Nursing Home Fees

Organising Your Affairs Request & review your Tax Credit Certificates. Ensure correct allocation of Standard Rate Band between spouses. Notify amendments to Inspector. File Tax Returns annually. Review previous Tax years. Make sure you claim for Spouses & Childrens’/training & temporary/marriage gratuity interest and other Superannuation deductions. ***Seek professional advice***

MidasTax Service Expert Team led by Qualified Chartered Tax Advisor with 20 years industry experience. Remove the stress & the unknown of filing your own return Full support service – Home, Phone and the MyCornmarket App One-stop shop for all your financial & tax planning needs Rental returns, Capital Gains and Capital Acquisition Tax returns Public Sector Specialists with detailed knowledge of all areas.

It pays to be tax compliant… To date we have claimed back over €40 million in overpaid tax on behalf of Public Sector employees like you*. PAYE Self-assessed 20% owe money* €30 per month 89% receive a refund. Only 5% owe money* €47.50 per month *Source: Midas, customer statistics, 2016. Midas is a tax based service and not a regulated financial product. Cornmarket Retail Trading Ltd. is a wholly-owned subsidiary of Cornmarket Group Financial Services Ltd. Telephone calls may be recorded for quality control and training purposes.

If you need any help with your tax affairs we are available Thank You. If you need any help with your tax affairs we are available on (01) 408 4106. Any Questions? Midas is a tax based service and not a regulated financial product. Cornmarket Retail Trading Ltd. is a wholly-owned subsidiary of Cornmarket Group Financial Services Ltd. Telephone calls may be recorded for quality control and training purposes.